Correlation Between Agilent Technologies and SCIENCE IN
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and SCIENCE IN at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Agilent Technologies and SCIENCE IN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and SCIENCE IN SPORT, you can compare the effects of market volatilities on Agilent Technologies and SCIENCE IN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agilent Technologies with a short position of SCIENCE IN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and SCIENCE IN.
Diversification Opportunities for Agilent Technologies and SCIENCE IN
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and SCIENCE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and SCIENCE IN SPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCIENCE IN SPORT and Agilent Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agilent Technologies are associated (or correlated) with SCIENCE IN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCIENCE IN SPORT has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and SCIENCE IN go up and down completely randomly.
Pair Corralation between Agilent Technologies and SCIENCE IN
Assuming the 90 days horizon Agilent Technologies is expected to generate 15.42 times less return on investment than SCIENCE IN. But when comparing it to its historical volatility, Agilent Technologies is 2.97 times less risky than SCIENCE IN. It trades about 0.01 of its potential returns per unit of risk. SCIENCE IN SPORT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14.00 in SCIENCE IN SPORT on November 4, 2024 and sell it today you would earn a total of 13.00 from holding SCIENCE IN SPORT or generate 92.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. SCIENCE IN SPORT
Performance |
| Timeline |
| Agilent Technologies |
| SCIENCE IN SPORT |
Agilent Technologies and SCIENCE IN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and SCIENCE IN
The main advantage of trading using opposite Agilent Technologies and SCIENCE IN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, SCIENCE IN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SCIENCE IN will offset losses from the drop in SCIENCE IN's long position.| Agilent Technologies vs. JSC Halyk bank | Agilent Technologies vs. COREBRIDGE FINANCIAL INC | Agilent Technologies vs. De Grey Mining | Agilent Technologies vs. PNC Financial Services |
| SCIENCE IN vs. Nestl SA | SCIENCE IN vs. Kraft Heinz Co | SCIENCE IN vs. General Mills | SCIENCE IN vs. General Mills |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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